Friendly Finance - Episode 2: The current account, debit cards and credit cards

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We start our adventure with the basics of the instruments of deposit and payment, I will try to sweep the topics. I don’t want to bore you with too many and too complicated technical terms. The Finance should be more friendly and not something terrible or too complicated to understand, then with the passage of time we will also go on specific topics and current affairs. This possibility it's useful for all the users, and,moreover,I think it could be very useful as formation tool at school. Francesco Rulli explained me the project he's developing in the last few years in Afghanistan in building schools and in improving the IT level in schools.

I think that also this subject can contribute to improve the knowledge for the students that are living in these regions.

The current account, bank or post office, it is the most prevalent form of cash deposits, the instrument for financial basis. Whether for private, commercial businesses.
It’s the tool where you can merge all electronic transactions of payments/recoveries that pass through your interbank circuits. For private individuals, mainly for channeling salary, debit cards and credit cards, debit utilities, payment and collection of checks. For businesses, for the collection and payment invoices, receipt/payment through bank wire, and use check cashing.

The debit card is linked to a current account, a tool that allows you to withdraw through ATMs or make payments at the partner. The Debit Card, associated to a bank account, is a tool which allow to withdraw cash at the ATM machines and to make payments in the commercial activities connected with this kind of payment. It is called Debit Card, because the customer account is charged almost at the same time of the transaction, so that the account is checked almost in real time for the money availability.

While for the credit card, there is also a prepaid form and rechargeable electronic purse type, is another payment instrument which has a ceiling of monthly expenditure, within this limit, the user can pay at points of acceptance, there are several international circuits . The main difference with the debit card is the type of circuits where it can be used, and the fact that is charged to the account each month by accumulating the expenditure incurred.

In general, the use of electronic payment instruments has been pushed in recent years, to reduce the use of cash, traceability and safety of operations.

Until next time ...

Alessandro Fatichi

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About the author


Since 1986 I started my working life in Florence in the financial sector, the first experience at a trading company as an employer in the office archive/shipments, shortly after I moved to the center of the Elaboration Data Exchange Office as an operator. One of the most important and fun,…

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